Contract Trading Strategy
1. Selection of Trading Targets
Mainstream Priority: Focus only on BTC and ETH, avoiding interference from altcoins.
Liquidity Advantage: Mainstream coins have strong liquidity and lower trading risks, making them more suitable for high buy low sell strategies.
2. Short Strategy
Entry Point: Focus on key moving average resistance on the 4-hour chart, such as MA60.
When MA60 continuously suppresses the price, you can gradually open short positions near this moving average.
Stop Loss Setting: Set the stop loss point at the previous high position after the price spikes and falls back.
Example: If the resistance level is at 2440, and the price briefly spikes to 2450 before falling back, the stop loss can be set above 2450.
3. Long Strategy
Entry Point: Choose the same level or higher level support to gradually enter long positions.
Stop Loss Setting: Set at the previous low position after the price spikes and rebounds.
Example: If the support level is at 2320, and the price briefly drops to 2310 before rebounding, a stop loss can be set below 2310, such as near 2300.
4. Capital Management
Daily Loss Control: The maximum daily loss should not exceed 20% of the total principal. If it reaches 20%, trading will be suspended for the day.
Single Trade Stop Loss: Control each individual loss within 10% of the principal to avoid affecting the overall account.
Position Balance: Keep all opened positions consistent to avoid increased risk due to over-leveraging.
5. Trading Discipline
Hot Coin Trading: Pay attention to hot coins when the market trend is good, but still strictly control risks.
Profit and Loss Ratio Setting: It is recommended to set the profit and loss ratio at 3:1 to ensure that profits far exceed losses.
Daily Drawdown Limit: If the daily loss reaches 10%-15%, trading will be suspended to maintain rational operation.
6. Response to Market Crash
Maintain Cash Position: In extreme market conditions, do not blindly bottom-fish, patiently wait for clear market signals.
Rational Waiting: When there are no suitable opportunities, it’s better not to trade to avoid unnecessary losses due to emotional fluctuations.
7. Take Profit and Stop Loss Strategy
Breakeven Stop Loss:
If the candlestick pattern is stable after opening a position, you may not need to set a breakeven stop loss; if the pattern is damaged or unfavorable signals appear, promptly adjust the stop loss to the breakeven point.
For example: Set a breakeven stop loss after ETH is up 20 points; set a breakeven stop loss after BTC is up 350 points.
Moving Stop Loss:
Use 3/5 minute candlestick dynamic adjustments to lock in floating profits.
For example: Start moving stop loss strategy after ETH is up 35 points and BTC is up 500 points.
8. Trading Mindset
Stay Away from All-In: Pursue stable profits rather than overnight wealth.
Overcoming Greed: Stay calm and operate rationally, do not allow momentary greed to lead to liquidation.
💎 Summary
This blockchain contract trading strategy combines technical indicators, risk control, and capital management, suitable for stable trading of mainstream coins (BTC, ETH). Market fluctuations are inevitable, but as long as you strictly adhere to trading discipline and take profit and stop loss strategies, you can steadily make profits amidst volatility. Want to become the next cryptocurrency expert? Start with stable trading and seize every profit opportunity! Wealth code! Potential tokens #总统狗conan or a 100-fold surge.
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